Transaction devices are portable items that store data, such as credit cards, debit cards, gift cards, access cards, and cards for various prepaid services or goods. Magnetically encoded transaction devices typically store data in a magnetic strip. A “smart card” is a transaction device that typically contains an embedded microprocessor that offers some degree of computing capacity.
A smart card integrated with a radio frequency component becomes a contact-less smart card, which may communicate with a compatible contact-less card reader without physically contacting the card reader. Communication between a contact-less smart card and various types of contact-less card readers may occur via a radio frequency signal. A contact-less smart card may be a radio frequency identification card, or RFID card. When an RFID card is brought near a contact-less card reader, a radio frequency signal may be exchanged between the RFID card and the contact-less card reader. An RFID card may be used to make automatic payments at, for example, highway tolls, or to provide access to restricted areas. An RFID card in an automobile may be read by a card reader at a toll booth. As the automobile passes through the toll booth, the contact-less card reader may cause a toll to be automatically deducted from a prepaid account or billed to a credit card. When transactions occur between a contact-less smart card and a contact-less reader, the smart card application and associated data may be resident on the contact-less smart card.
A mobile device, such as a mobile phone, may include an integrated contact-less smart card. Thus, if a contact-less card reader is present at a location where commercial transactions occur or where contact-less smart cards are used, the mobile device may make payments, provide access to restricted areas, and perform other functions or transactions typically performed by smart cards if appropriate smart card applications are resident on the integrated contact-less smart card, such as a payment application or an access badge application.